T Rowe Price's assets under management were $454 billion on 30 September, a decline of 13% compared with the previous quarter as the summer volatility took its toll.
Market depreciation accounted for most of the decline, $64.8 billion, with the remaining $2.6 billion caused by outflows. T Rowe Price blamed the outflows on third-party intermediaries and institutional investors reducing risk in their portfolios.
However, the company's business was stronger than last year. Profits were up nearly 10% compared with the third quarter of 2010 and revenues increased 16%.
T Rowe Price president James AC Kennedy said: “In this environment we remain vigilant about our expense management, both for the remainder of this year and as we plan for 2012.”
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